Korea-based game company SHIFT UP saw its operating profit in the second quarter cut in half from a year earlier due to a lack of new releases.
SHIFT UP said on the 11th that its second-quarter operating profit fell 58.8% on-year to 28.1 billion won. Revenue declined 50.4% over the same period to 55.7 billion won, and net profit decreased 18.7% to 41.7 billion won.
Analysts said the weak results were largely due to the absence of new releases in the first half of this year and the base effect from last year's launch of the PC version of "Stellar Blade."
By major title, flagship "Goddess of Victory: Nikke" posted 43.3 billion won in revenue, down 4.1% from a year earlier. Thanks to the recent 3.5-year anniversary event, revenue rose 32.4% from the previous quarter. "Stellar Blade" revenue came to 8.8 billion won, down 86.6% from a year ago.
Second-quarter operating expenses were tallied at 27.6 billion won, down 37.5% on-year due to a decline in commission fees linked to revenue. SHIFT UP said, "Operating expenses were reflected as we acquired Japanese game developer Unbound in the second quarter and included it as a subsidiary through consolidation."
With the inclusion of Unbound, the total headcount increased from 355 in the first quarter to 442 in the second quarter.
SHIFT UP plans to bolster the competitiveness of its existing intellectual property (IP) in the second half and secure growth momentum by unveiling its next title. "Goddess of Victory: Nikke" aims to maintain solid performance with a 4-year anniversary update in the second half. "Stellar Blade" will expand its platform to Nintendo Switch 2 in the second half.
It said development of the follow-up "Stellar Blade: Bloodrain," unveiled on June 6, is proceeding smoothly. A company official said, "Under the principle of securing sufficient development time to deliver the highest level of polish, we plan to disclose game information sequentially." The next title, "Project Spirit," is also being prepared with the goal of unveiling it in the second half of this year.